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My "looks too good to be true" indicator light went on while browsing his
website. How can he be profitable on 60-80% of his trades when he is buying
out of the money calls and puts?
----- Original Message -----
From: "John Blucar" <blucar@xxxxxxxxxxxxxxxx>
To: <omega-list@xxxxxxxxxx>
Sent: Monday, June 30, 2003 10:09 PM
Subject: Any options traders here ?
> Not being an options trader I thought I might pose this to the list:
>
> I'm considering trading options, but only using a hotline with a posted,
trade by trade win record of like 76% to 81% over last 2.5 years.
>
> We always hear trading options can be more risky than other types of
trading, but with win percentages like those how can you loose ?
>
> Are fees and commissions for options relatively excessive compared to
trading
> e-mini futures ?
>
> I'm considering Steve Sarnoff's hotline as he gives a trade once per week
and you hold an average of 2 to 6 weeks till target objective reached.
>
> Certainly sounds like it beats staring at a computer screen all day ---
daytrading.
>
> The trade by trade track record looks rather impressive --- if you
invested only $5,000 in each trade since Jan 1st 2000 his record shows like
$660,000 today using about $20,000 to $25,000 starting equity (you need like
$5,000 to $6,000 for each weekly play times about 4 weeks average hold then
you start recycling the first trade back into the next and so on).
>
> Of course he shows peak price prior to trigger so if you figure catching
only 66% of each move you still get like $435,000, and then reduce it a
little further to factor in commissions and fees.
>
> But all this is without compounding leverage, or re-investing your gains
into larger positions each time.
>
> Any constructive comments appreciated.
>
>
> John
>
>
>
>
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